$7M in flood aid for housing to be shifted to west riverfront work

Jun. 26, 2013

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Written by

Joey Garrison

The Tennessean

The mayor is moving forward with a plan to redevelop the former thermal plant site on the west bank of the river. / John Partipilo / The Tennessean

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The Metro Development and Housing Agency is looking to reallocate more than $7 million in federal flood aid from housing assistance to west bank riverfront plans.

A reprioritization of projects comes as Mayor Karl Dean prepares for the revitalization of the Cumberland River’s west bank, with an emphasis on the 12-acre former thermal transfer plant property. He’s already put some $20 million toward the project in his recently approved capital spending plan.

MDHA’s chunk of dollars would go specifically toward flood-mitigation along the west bank, officials say.

The money would come from $33 million in Community Development Block Grant funding the U.S. Department of Housing and Urban Development awarded Davidson County after the catastrophic flood in May 2010. About one-third of that federal money has been spent. It is separate from money the city received from the Federal Emergency and Management Agency.

The revamped plan requires approval from MDHA’s board and the Metro Council before HUD officials review it.

Angie Hubbard, MDHA’s director of community development, said funds are no longer needed for victims whose homes were damaged by the historic flood.

“They’re either back in their house or they’ve walked away,” Hubbard said. “When we saw that we were slowing down on the housing (needs), we consulted with the city on making the most effective use of these funds.”

More than $9 million in these HUD grants have gone toward the repair and rehabilitation of owner-occupied homes. The flood damaged 9,000 properties. According to MDHA, applications seeking loans or grants to repair funds have dried up.

The revised plan eliminates $5 million currently budgeted toward down-payment assistance, new construction assistance and emergency rehabilitation among other areas. Other programs would be cut significantly, including a rental rehab loan program that would get $22,000 instead of $1 million.

Metro has already hired a design firm that is finalizing a west bank master plan. Plans, which could be released in the coming weeks, are expected to concentrate chiefly on the old thermal plant site’s conversion into public park space that could hold a outdoor amphitheater.

As part of the same pool of flood funds, MDHA has spent $3 million to perform bank stabilization work to fix eroded land on the east bank near Cumberland Park. Reallocated funds, totaling $7.1 million, would go to the west bank only.

“A significant aspect of the riverfront redevelopment project on the west bank is related to flood mitigation steps to avoid what happened in 2010,” Metro Finance Director Rich Riebeling said. “We would expect these funds to support that aspect of the project.”

The hardest hit part of downtown in the May 2010 flood were low-lying areas south of Broadway, where institutions such as the Schermerhorn Symphony Center experienced substantial damage.

One possible flood-mitigation device could be a promenade that would protect SoBro from future flooding and provide an attractive public space as well, according to observers.

MDHA’s action plan also reallocates $1.2 million in flood money to help cover the $4 million construction of a new 35-unit residential development planned for 1605 Jefferson St.

MDHA would keep $1.5 million reserved for the city’s home buyout program whereby flood-prone homes are bought and demolished. To date, the city has purchased 104 homes.

The agency is accepting public comments through July 2 but isn’t hosting a public hearing on the changes.